CONVOCATION:
Define the term strategy?
In
order to understand the concept of strategic management, first we need to
understand the literal meaning of the word “strategy”. The definition is
mentioned below:
1.
The science and art
of using all the forces of a nation to execute approved plans as effectively as
possible during peace or war. The science and art of military command as
applied to the overall planning and conduct of large-scale combat operations.
2.
A plan of action
resulting from strategy or intended to accomplish a specific goal.
3.
The
art or skill of using stratagems in endeavors such as politics and business.
What
is the relationship between Strategic Planning & Total Quality Management?
When
an organizations chooses to make quality a major competitive edge
(differentiation), it becomes the central issue in strategic planning. This is
especially reflected in vision, mission and policy guidelines of an
organization.
An
essential idea behind strategic quality planning is that the product is
customer value rather than a physical product or service. This feat cannot be
achieved unless an organization creates a culture of quality and no strategy
and plan can be worthwhile unless it is carefully implemented.
What do you understand by the term quality statements?
Elaborate them with examples.
Quality
statements are part of strategic planning process and once developed, are
occasionally reviewed and updated. There are three types of quality statements:
1. Vision statement
2. Mission statement
3. Quality policy statement
2. Mission statement
3. Quality policy statement
The
utilization of these statements varies from organization to organization. Small
organization may use only the quality policy statement.
1.
Vision Statement: The vision statement is a short declaration what an
organization aspires to be tomorrow. A vision statement, on the other hand,
describes how the future will look if the organization achieves its mission.
Successful
visions are timeless, inspirational, and become deeply shared within the
organization, such as:
- IBM’s Service
- Apple’s Computing for the masses
- Disney theme park’s the happiest place on the earth, and
- Polaroid’s instant photography
2.
Mission Statement: A mission statement concerns what an organization is all
about. The statement answers the questions such as: who we are, who are our
customers, what do we do and how do we do it. This statement is usually one
paragraph or less in length, easy to understand, and describes the function of
the organization. It provides clear statement of purpose for employees,
customers, and suppliers.
An
example of mission statement is:
Ford
Motor Company is a worldwide leader in automatic and automotive related
products and services as well as the newer industries such as aerospace,
communications, and financial services. Our mission is to improve continually
our products and services to meet our customers’ needs, allowing us to prosper
as a business and to provide a reasonable return on to our shareholders, the
owners of our business.
3.
Quality Policy Statement: The quality policy is a guide for everyone in the organization
as to how they should provide products and services to the customers. It should
be written by the CEO with feedback from the workforce and be approved by the
quality council. A quality policy is a requirement of ISO 9000.
A
simple quality policy is:
Xerox
is a quality company. Quality is the basic business principle for Xerox.
Quality means providing our external and internal customers with innovative
products and services that fully satisfy their requirements. Quality is the job
of every employee.
How an organization can do strategic quality planning?
The
process starts with the principles that quality and customer satisfaction are
the center of an organization’s future. It brings together all the key
stakeholders.
The
strategic planning can be performed by any organization. It can be highly
effective, allowing the organizations to do the right thing at the right time,
every time.
There
are seven steps to strategic Quality Planning:
1.
Discover customer
needs
2.
Customer positioning
3.
Predict the future
4.
Gap analysis
5.
Closing the gap
6.
Alignment
7.
Implementation
1.
Customer Needs: The first step is to discover the future needs of the
customers. Who will they be? Will your customer base change? What will they
want? How will they want? How will the organization meet and exceed
expectations?
2.
Customer Positioning: Next, the planners determine where organization wants to be
in relation to the customers. Do they want to retain, reduce, or expand the
customer base. Product or services with poor quality performance should be
targeted for breakthrough or eliminated. The organization’s needs to
concentrate its efforts on areas of excellence.
3.
Predict the future: Next planners must look into their crystal balls to predict
the future conditions that will affect their product or service. Demographics,
economics forecasts, and technical assessments or projections are tools that
help predict the future.
4.
Gap Analysis: This step requires the planner to identify the gaps between
the current state and the future state of the organization. An analysis of the
core values and concepts is an excellent technique for pinpointing gaps.
5.
Closing the Gap: The plan can now be developed to close the gap by
establishing goals and responsibilities. All stakeholders should be included in
the development of the plan.
6.
Alignment: As the plan is developed, it must be aligned with the
mission, vision, and core values and concepts of the organization. Without this
alignment, the plan will have little chance of success.
7.
Implementation: This last step is frequently the most difficult. Resources
must be allocated to collecting data, designing changes, and overcoming
resistance to change. Also part of this step is the monitoring activity to
ensure that progress is being made. The planning group should meet at least
once a year to assess progress and take any corrective action.
SIXTEEN (16) SUPER-POLICIES FOR STRATEGIC SUCCESS:
1.
Forget the past. In the immortal words of Sheridan's
Mrs. Malaprop, which I've often quoted, 'We must not anticipate the past' - but
most management persists in the belief that the past will be the future. It
won't. The past offers valuable guidance - but strategy derives far more
benefit from full and proper understanding of the present - which is the
explanation of Peter Drucker's remarkably accurate record as a seer.
2.
Think global. With the exception of the US, no
domestic market is big enough to support large strategic ambitions - and even
Americans, now that boundaries are becoming meaningless, are well advised to
look beyond their own shores to world markets.
3.
Internal change must be drastic. Why do organizations go through
shake-up after shake-up without making enough forward progress? In Kami's
words, 'One needs transformation, not reformation.' That's what you would seek
in crisis: act radically now, and there won't be a crisis.
4.
Base your business on knowledge and
information, not things. Increasingly every business faces across the board the same
challenge that confronts purchasers of IT equipment. You know that your
state-of-the-art purchase will be out-of-date before the system is bedded in.
Extracting value from fixed assets depends on the mobile assets of people and
intellectual capital.
5.
Create an information-based organization. Found your strategy on a substructure
of information and communication systems that meet both present and future
needs - for all employees, suppliers and customers.
6.
Concentrate on core competencies in
your businesses.
This is the
Hamel-Prahalad thesis. What are we really good at? Having established that,
make sure you're not just good, but the very best at the activities that really
drive your business.
7.
Reduce organizational levels. Remember James Champy's ideal - an organization with three
layers: top management, executive management, and all the self-managers below,
aided by expertise managers. Can you justify any further layers? If not, axe
them.
8.
Empower your employees. Thinking Managers have many times pointed to the
superior value created by devolving authority to individuals and teams which
have the resources to take decisions and responsibility. It's plainly the only
sensible way to manage managers: it's also by far the best way for them to
manage others.
9.
Provide continuous, lifelong
self-improvement programs. Sun
Life, the British insurer, has an open learning facility at its Bristol
headquarters. The better educated you and your people are - not just in
necessary expertise, but in thinking, reading and learning skills - the better
your business will be managed.
10.
Manage talent. Attracting, motivating and retaining the best people you can
find is fundamental. Remember, however, they are only as good as their
environment, their development and their powers.
11.
Practice global benchmarking. On all significant activities, is the
company as good as or better than the best examples inside or outside the
industry, anywhere in the world? If the answer isn't known, opportunities for
great improvement are going begging.
12.
Consider re-engineering. The word is only a newish phrase for the old essential of
studying processes from start to finish with the aim of saving time and money
and raising effectiveness. Drop superfluous processes and parts of processes,
and redesign from scratch if that's the best solution.
13.
Redefine quality standards. This applies to processes, products
and services alike. However admirable performance may be, it can always be
improved.
14.
Create partnerships. Kami applies this principle to external relationships with 'marketers,
suppliers, distributors, subcontractors throughout the globe.' I would extend
partnership internally - ensuring that people form teams and alliances within
the business.
15.
Compress time. The faster, the cheaper - other things being equal. Rapid
decisions are generally better than delayed ones - and always better than
procrastination. Shorter cycle times are money in the bank.
16.
Act outside-in. Don't look at the business with the
eyes of an insider. How do outsiders - above all customers and suppliers -
regard the organization? What would a man from Mars conclude and recommend
after surveying the business with his fresh, unprejudiced eyes?
scout we
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